Risk Management Outlook 2015: A Critical Juncture on the Way to Industrialization

by Cubillas Ding, February 12, 2015
Industry Trends
Global

Abstract

As industrialization dynamics around risk technology and operations gathers momentum, Celent urges firms to sustain a current trajectory to establish strategic foundations to enable growth, not merely to tactically address regulatory change.

Risk management operations and technology have come a long way since the last financial crisis, but firms are hurting from executing to the weight of industry reform and capital and compliance requirements borne out of the “dark ages.” With financial stability foremost in the minds of politicians and regulators, the rapid thrust for the financial industry to improve and industrialize risk operations is reaching a critical juncture. However, there is much work to be done, as firms on the whole still need to address maturity gaps in many parts of the information delivery value chain.

In the report Risk Management Outlook 2015: A Critical Juncture on the Way to Industrialization, Celent examines where the industry stands with risk and regulatory initiatives and explores the emerging outlook, trends, and imperatives that financial firms should put an emphasis on.

In the new world where there are shifts towards costly, more intrusive, and data-intensive regulatory regimes, the ability to achieve scale, reliability, and transparency at the right operational economics will be a winning factor for financial services business models.

“We expect that within the next five years, information and metrics production activities for risk management, compliance, and regulatory are more likely to resemble round-the-clock global factories with just-in-time data supply chains rather than uncoordinated clusters of localized cottage industries, as they are today,” says Cubillas Ding, a research director with Celent’s Securities & Investments practice and author of the report. “The outlook could be attractive if firms play their cards right, but could be detrimental if response initiatives are not executed cohesively.”

In this report, Celent presents six imperatives for financial firms in order to achieve sustainability for the long haul. Firms will need to keep their eye on the ball and execute to initiatives that matter most to identify and industrialize maturity gaps.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

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Michele Pace
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Europe (London)
Chris Williams
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Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

Key Research Questions

3

Navigating Heightened Needs and Expectations

4

 

Imperatives

6

Looking Forward

19

Leveraging Celent’s Expertise

20

 

Support for Financial Institutions

20

 

Support for Vendors

20

Related Celent Research

21

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